Small and medium-sized enterprises (SMEs) in UK are planning to invest for future growth, according to new research from Aldermore.

The Aldermore SME Outlook 2016 found that 39% of businesses surveyed intend to hire more staff over the next five years to foster growth, while 22% plan to invest in new assets such as machinery or vehicles to increase productivity.

In addition, 19% of SMEs intend to grow by joining forces with another business either through a merger or acquisition. Only 14% of those questioned claimed that they will not be taking positive action in order to grow their business.

Despite uncertainties over a possible Brexit, SMEs in the UK are confident that investing in their businesses is the best way forward to strengthen their position in the market. With a significant proportion of SMEs intending to hire new staff, prospects for the UK job market look set to remain strong, Aldermore claimed.

Carl D’Ammassa, Aldermore’s group managing director for business finance, said: “It’s clear that SMEs are being proactive and have strong plans in place to grow their business over the next five years. Not only are they intending to promote their business through increased marketing activity but they are also taking steps to launch new products and hire new staff.

“Whether this is despite of or in reaction to the upcoming uncertainty brought on by the EU referendum is difficult to gauge. However, what is clear is that, these steps will serve to increase the ability of SMEs to continue driving economic growth in their communities and throughout the wider UK economy.”